1. What is meant by “materials management”?
The planning and control of the functions carrying the entire cycle (flow) of materials, and the associated flow of information. These purposes encompass identification, cataloging, standardization, need conclusion, scheduling, procurement, inspection, quality control, packaging, storage, inventory control, distribution, and disposal. 2. Describe how purchasing interacts with other aspects of the supply chain.
The period provide string of connections is utilized to recount the collaboration of diverse entities to assist proceed goods and services from suppliers to customers. Accounting is to blame for management payments to suppliers and should be notified punctually when items are obtained in alignment to take benefit of likely discounts. Operations constitute the major source of demands for bought materials. 3. Why is integrity such an important attribute for a purchasing manager?
Purchasing Managers design, coordinate, direct, organize, assess, and are to blame for the allowance, buying undertakings, buying principles and scheme of an association, encompassing the identification of possibilities for operational improvements. Integrity is important because a dishonest person in a position with such responsibility could be detrimental to a company and its logistics footprint. 4. Why should the purchasing professional be concerned with strategic planning?
The strategic plan of an organization will inform the purchasing professional’s decisions on issues such as availability of materials, absolute dollar volume of purchases, percent of product cost represented by materials, and the types of materials purchased. 5. What is meant by “purchasing authority”? Give examples of each type of authority.
Purchasing authority is